"Taxing the Rich: California's Bold Experiment to Close Loopholes and Make Billionaires Pay Up. As the wealth gap continues to widen and billionaires' fortunes skyrocket, policymakers are under pressure to find ways to make them contribute their fair share. California is set to take the lead in this effort, with voters deciding in November whether to impose a one-time 5% tax on fortunes worth over $1 billion. But experts warn that unless the state tackles the numerous exceptions and loopholes that allow the wealthy to avoid paying income taxes, the new tax may not raise as much revenue as expected. By targeting the ultra-rich and their complex financial arrangements, California's initiative could set a precedent for other states and the federal government to follow, but its success will depend on whether lawmakers can crack down on the tax avoidance strategies that have long been used by the wealthy elite."
Any new tax on the rich won’t raise much money unless many of the exceptions and loopholes are dealt withIn this new era of rampaging oligarchs, nothing may seem as satisfying as slapping a tax on Elon Musk’s new trillion-dollar fortune. What most bothers Americans about federal taxes is that billionaires don’t pay their fair share. As the race to develop artificial intelligence mints more billionaires, policymakers’ temptation to directly tax their brobdingnagian wealth is becoming unbearable.The first state out of the blocks is California, where voters in November will decide whether to impose a one-time tax of 5% on fortunes worth more than $1bn. Given the ease with which plutocrats avoid paying income taxes, the case for this sort of direct tax on their stash appears unassailable. Continue reading...
